PROJECT REPORT

ON
DOMESTIC TOURISM

Submitted By:
Sandesh Kumar Shah
MBA – IV Trimester
Ace Institute of Management

Submitted To:
Deeptangshu Thapa
Instructor
Consumer Behavior
Ace Institute of Management

Date of Submission: July 28, 2022

Nepal is a country with paramount potential for tourism due to its natural resources and a
favorable environment. Nepal has always been known as a tourist destination, whether for
mountaineering enthusiasts seeking their highest mountain summit, trekking from tourist cities to
snow-covered base camps, Buddhist pilgrimage and historic site tours and so on. Because Nepal
is a mountainous country, the majority of its tourism activities are adventurous, such as
mountaineering, trekking, hiking, rafting, jungle safari, water-related activities, and so on.
Although Nepal is a tourist destination with a tourism history dating back over 70 years, many
tourism activities remain untapped. Due to this domestic as well as international tourism is not
flourishing. Apart from that, other factors contribute to Nepal's lack of thriving domestic
tourism. Tourism experts have identified several factors that, among other things, hinder the
potential growth of domestic tourism, such as poor management of tourist attractions, a lack of
promotion, poor connectivity between tourism destinations, and a lack of proper segmentation
and targeting, and many others.

To foster a thriving domestic tourism industry in Nepal, the Nepal tourism board should focus on
consumer research because it allows the tourist board to collect and compile data from marketing
research that reflects consumer satisfaction, demands, and requirements. It may also provide
information on consumer visiting patterns, profiles, and traits. The study's findings could be used
to determine which tourist attractions and activities are popular with visitors and which service
areas could be improved. Furthermore, the Tourism Board will be able to assess the effectiveness
of marketing campaigns and destinations branding to attract customers.

As a representative of the Nepal Tourism Board, I interviewed some people from various
generations to better understand people's attitudes, perceptions, motives, and needs to travel
within Nepal to support domestic tourism. The data collected by interviewing different people
are summarized below:

Baby Boomers 
According to the interview, baby boomers are financially well off and have a greater desire to
pursue activities that have been postponed from earlier in life. They seek authentic and
memorable travel experiences. They are likely to use vacation as an opportunity to rejuvenate

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and relax. They are interested in heritage sites, arts and culture. Destination places for baby
boomers can be Devghat, Muktinath, Pashupatinath, Lumbini, Janaki temple, and many more.
However, they also demonstrate a preference for activities like hiking, massage, museums visit,
etc. They need to travel to escape from their regular life, relaxation, prestige, regression, kinship
enhancement, self-exploratory, and social interaction. Their "bucket list" and religious beliefs are
major motivators. Excitement, making social connections (especially with locals), learning about
faiths and traditions, and spending time with loved ones are some of the other motivations.
Similarly, the diverse traditions and a large number of temples entice them to visit such
locations. Likewise, they perceive that Nepal is rich in history and culture, so rather than
traveling abroad, they prefer to visit different parts of Nepal that are home to a variety of
religions.

Millennials 
This age bracket has a willingness for learning and discovery. Most of them go to visit to relax
and get to escape from their usual lifestyle. Their motivation comes from visiting unknown
places packed with information and discovery. They also seek travel destinations with historical
or cultural significance. Despite that, they prefer travel experiences that provide exotic,
meaningful, and cultural experiences. Millennials believe that Nepal has many peaceful and
beautiful landscapes where they can relax. Also, with charming nature, unique culture, and
lifestyle, Mountain View offers many more to have a lifetime experience. Similarly, there are
many places where people can travel with their families and friends. However, they highly
recommend the Nepalese government organize a travel package that blends comfort
and adventure.

Gen Z
They are eager to travel to find thrills and excitement in their life and prefer high-adventure
experiences. They are bucket-list-oriented and seek interactive social and unique experiences.
They are a digitally native generation and get trip planning inspiration from social media like
Facebook, Instagram, TikTok, etc. They prefer the activities which range from national park visit
in Chitwan, rock climbing in Hattiban, mountain biking in Mustang, and paragliding in Pokhara
to a once-in-a-lifetime bungee jumping experience in Bhotekoshi River. Gen Z believes that

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Nepal is the best destination for insanely adventurous activities. It commands immense
possibilities. Although there is a tremendous and unique tourism potential in Nepal, they believe
the government requires adequate planning for the sustainable development of tourism.

From this interview, we can see that Nepal's tourism industry is picking up in growth. Nepalese
are now habitual of traveling to various places within Nepal for relaxation and recreation.
Domestic tourism is prevailing and ingrained as a major trend in Nepal, both in terms of industry
growth through investment and motivation. Furthermore, the increase in domestic tourism in
Nepal is consistent with the global trend. A large number of domestic tourists participate in
adventure tourism activities such as trekking, bungee jumping, cycling, rafting, and so on. Two
well-known homestay villages (Ghalegaun and Sirubari in the western part) are popular with
domestic tourists, offering visitors new tastes and services. Other popular types of tourism in
Nepal include pilgrimage and meditation. Nepali land has been considered a good place for
meditation since the ancient period, with temples and caves in the hills, mountains, and lower
plain land in the southern belt.

Targeting:

Market segmentation is crucial

in making sure that national
resources are used in the most
effective
way. Everything they do is
media selection, destination

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positioning, branding, editorial,
visuals, etc.
revolves around the segments
that have been identified as
the most important. This is
why
monitoring and managing a
portfolio of target segments that
meet destinations tourism
objectives
has become a critical function.
Market segmentation is crucial
in making sure that national
resources are used in the most
effective
4|Page
way. Everything they do media
selection, destination
positioning, branding, editorial,
visuals, etc.
revolves around the segments
that have been identified as
the most important. This is
why
monitoring and managing a
portfolio of target segments that
meet a destinations tourism
objectives
has become a critical function.
Market segmentation is crucial
in making sure that national
5|Page
resources are used in the most
effective
way. Everything they do media
selection, destination
positioning, branding, editorial,
visuals, etc.
revolves around the segments
that have been identified as
the most important. This is
why
monitoring and managing a
portfolio of target segments that
meet destinations tourism
objectives
has become a critical fun
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The target market represents a specific group of people for whom the Nepal Tourism Board can
concentrate its marketing efforts. Targeting is crucial in making sure that national resources are
used most effectively. Everything they do media selection, destination positioning, branding,
editorial, visuals, etc. revolves around the target segments that have been identified as the most
important. This is why monitoring and managing a portfolio of target segments that meet a
destination's tourism objectives has become a critical function. As a member of the tourism
board, I will focus to target Millennials because this generation doesn’t mind spending extra if
the packages suit their expectations and demands. Nepal being a culturally diverse country can
provide them with authentic, unique, and cultural experiences. Globally, they make up a
crucial demographic for the overall growth of domestic tourism. Furthermore, millennials travel
more frequently and explore more destinations. The pure natural beauty, absolutely incredible
mountains, and peaks, varieties of adventure activities, etc. will undoubtedly fulfill
their expectations. Therefore, I believe that it’s essential to look at millennials as a consumer of
domestic tourism in Nepal. Tourism in Nepal is best known for creating memorable experiences
and this fits incredibly with Millennials.

Positioning:
Once the targeting is completed the next step is positioning itself in the target market by
developing a marketing mix. Nepal Tourism Board can position Nepal as a tourism destination
based on its authentic cultures, food, architecture, natural beauty, lifestyle, and so on. NTB can
also use destination branding of different places of Nepal based on their authentic specialty and
features where people can have a divine experience.  NTB should position Nepal as a land of
discovery and unique experiences. Nepal is the ideal destination for open-minded individuals
seeking an authentic and mesmerizing experience. Come take joy in the unknown and
undiscovered, and discover yourself. The vast variety of Nepal, from steamy jungle and Terai to
the icy peaks of the world's highest mountains, means that the range of activities on offer is
incomparable. Nepal is famous for three things: trekking, mountaineering, and rafting in
beautiful landscapes. Elephant Polo and a micro-light flight through the Himalayas demonstrate
that the only limit in Nepal is your imagination. With 15 National and Wildlife Parks (two of

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which are UNESCO World Heritage sites), Nepal is one of the last places on the planet where
you can see Asiatic rhinoceros and Royal Bengal Tigers. NTB should also promote Nepal as a
country where you come to experience the strong and distinct flavors of Nepalese cuisine,
prepared with love and a depth of flavor, or join in on one of the many festivals held throughout
the year. In fact, with more festivals than days in the year, no other country in the world can
compete with Nepal.

Nepal is the home of Mount Everest, the world's highest mountain peak, and the birthplace of
Gautam Buddha, Lumbini. Mountaineering and other forms of adventure tourism, as well as
ecotourism, are popular tourist attractions. Nepal also has possessing 8 of the 10 highest
mountains in the world. NTB should promote Nepal as a hotspot destination for mountaineers,
rock climbers, and people seeking adventures that is what domestic customers are looking for.
While doing this, NTB should also focus and give priority to security and safety measures.
Domestic visitors will feel more confident and secure visiting those destinations as a result.

The NTB should also promote that the best way to experience Nepal’s unbeatable combination
of natural beauty and cultural riches is to walk through them. One can walk along the beaten
trails or virgin tracks. Either way, you are in for an experience for a lifetime. Along with forests
of rhododendron, isolated hamlets, and small mountain villages, birds, animals, temples,
monasteries, and breathtaking landscapes, you will also encounter friendly people of different
cultures offering a fascinating glimpse of traditional rural life. This will meet the need for
gathering information, discovering new places, and experiencing diverse authentic cultures and
lifestyles.

As Nepalese people are more price sensitive, the discounted packages and promotional schemes
should try to increase demand by concentrating on a few key tourist destinations to promote
domestic tourism. Investigating alternatives to mass tourism, such as sustainable rural tourism,
nature tourism, and theme-based circuit tourism, is necessary to revive the tourism industry and
give visitors fulfilling experiences. There is a need for strict legislation to safeguard biodiversity
and stop the unlawful activity. Governments can take the following measures to protect the
ecological balance from tourism: a greater emphasis and investment in capacity building and

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training; the addition of sustainability taxes for visitors; the protection of the sensitive
community and Indigenous People's areas from exploitation; and the use of scientific
frameworks for policy formulation.

Aside from that, NTB should focus more on raising awareness of tourism destinations within
Nepal, as most domestic visitors are unaware of many places that should be visited.  To raise
awareness of tourism destinations, NTB should create blogs, and various types of informative
videos, and promote them on social media. NTB should also promote and raise awareness about
tourism destinations and diverse authentic cultures through film production by facilitating film
shoots on those destinations and cultures. NTB should also do destination branding by
communicating the authentic features and specialties of various destinations via videos, blogs,
storytelling, and so on.

To incorporate cultural events and festivals into the process of developing the Nepal brand
image, the NTB must understand the local population's growing social media skills as well as
their significance. To focus on developing the national brand image, the NTB should establish a
"Nation Brand Desk." This desk would work with stakeholders to update the brand's logo and
slogan to make them more logical, inspire the local community to promote cultural events and
festivals in novel ways and oversee the planning of such events and festivals to uphold the brand
image.

Nepalese people are constantly looking for ways to improve their lives. They want to take a
break from their regular jobs. They temporarily leave their original locations to visit other areas
and observe new things for this purpose. This type of short movement of people for recreational
purposes and a wide range of services aimed at them is similar in some ways. Domestic tourists
are filled with enthusiasm and energy for travel, but they are always hampered by the cost factor.
In this case, NTB should offer various destination travel packages at reasonable prices for solo
travelers, couples, and families.

In most tourist destinations of Nepal, there is no proper infrastructure development. That’s why
people find it hard to travel to those destinations. To promote domestic as well as international

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tourism, NTB should also focus on infrastructure development such as roads, hotels,
transportation, internet, communication networks, etc. in tourism destination areas. This
motivates travelers to travel and explore new destinations that cannot travel through walking. As
a result, proper infrastructure development in tourism destinations and the availability of vast
tourism opportunities helps to match the needs of domestic travelers and motivate them to travel
and explore new places within the country which ultimately contributes to promoting domestic
tourism.

The traveler's attitude influences his or her willingness to travel. NTB should also communicate
the importance of traveling within the country and exploring different places and experiencing
different cultures and lifestyles, as well as the facilities they receive while traveling to those
destinations. This shapes people's attitudes toward traveling within the country. With a positive
mindset, domestic tourists are more motivated towards exploring new places, learn about new
cultures as well as creating a passion for traveling. When the traveler moves out of the comfort
zone, dopamine levels can rise in the brain. This is a reason that motivates travelers to attempt
new activities and explore new places. This will influence how we work hard, pay attention to
what's important, and find things intriguing. 

Therefore, NTB should positions the tourism destinations of Nepal in such way that meet the
needs of domestic travelers and motivate them to travel various destination within the country
which ultimately promote tourism industry of Nepal. Also NTB should focus on what travelers
value more and works on that to attract them. Focus on making aware of various destinations by
communicating values, specialties and authentic identity the detonations have. This make people
informed about various destinations and their importance and at end motivate them to visit.

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 “Nepal for Many Reasons
In all the Seasons”

“Visit 
Nepal to accumulate experiences for your lifetime”

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